Annual report pursuant to Section 13 and 15(d)

Net Loss Per Common Share, Disclosure

v3.7.0.1
Net Loss Per Common Share, Disclosure
12 Months Ended
Dec. 31, 2015
Notes  
Net Loss Per Common Share, Disclosure

11.  NET LOSS PER COMMON SHARE:

 

The Company computes loss per share of common stock using the two-class method required for participating securities. The Company’s participating securities include all series of its convertible preferred stock. Undistributed earnings allocated to these participating securities are added to net loss in determining net loss applicable to common stockholders.  Basic and Diluted loss per share are computed by dividing net loss applicable to common stockholder by the weighted-average number of shares of common stock outstanding.

 

Outstanding options and warrants underlying 2,591,471 shares were not included in the computation of diluted loss per share because the exercise price was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive.

 

The calculation of the numerator and denominator for basic and diluted net loss per common share is as follows:

 

 

For the year ended

December 31, 2015

 

For the year ended

December 31, 2014

Net loss from continuing operations

$

(2,982,920)

 

$

(3,685,601)

Net loss from discontinued operations

 

(371,307)

 

 

(840,649)

Net loss

 

(3,354,227)

 

 

(4,526,250)

Basic and diluted:

 

 

 

 

 

Preferred stock cumulative dividend - Series B (1)

 

--

 

 

(62,227)

Preferred stock cumulative dividend - Series C

 

--

 

 

2,200

Preferred stock cumulative dividend - Series D

 

42,942

 

 

230,542

Deemed dividend - inducement premium

 

--

 

 

1,332,376

Income applicable to preferred stockholders

 

42,942

 

 

1,502,891

Net loss applicable to common stockholders

$

(3,397,169)

 

$

(6,029,141)

 

(1)           Upon conversion of the Series B preferred stock into common stock, the holders of the Series B preferred stock were no longer entitled to the dividends recorded in the adjustment to net loss applicable to common shareholders in prior periods.  As a result, prior year reported dividends were adjusted downward to reflect this release of accumulated dividends.